Business Briefs
Dawn Food Products Inc., Jackson, Mich., increased prices for orders, effective July 1. “We are seeing unprecedented rises in commodity and ingredient markets along with dramatic increases in general transportation costs, especially diesel fuel,” said David Kowal, president, U.S. Bakery Products, Dawn. “Floods in the Midwest and other key factors are affecting the supply of corn and corn sweeteners, sugar, soybean and wheat crops. Also affecting supply is ever increasing global demand from China, India and other Asian countries. Additionally, crops converted for ethanol and bio-diesel are driving new demand. Dawn continues to manage costs by improving its supply chain management, and by reviewing all business practices to maximize efficiencies.
Fleischmann's Yeast, a division of AB Mauri, Chesterfield, Mo., implemented new pricing policies, procedures and price increases for its customers, effective, Aug. 4, or as contracts expire. Because of ongoing cost increases from its raw material suppliers, Fleischmann's will guarantee pricing and terms for a maximum of 90 days. Minimum purchase amounts per order also will be required to reduce delivery frequencies. Fleischmann's will increase the per-pound price of fresh yeast by 10 cents and dry yeast by 18 cents. Cost increases on energy, distribution, phosphoric acid and fermentable substrates are the main drivers. In addition, the price of calcium propionate will increase by 12 cents per lb.
Caravan Ingredients, Lenexa, Kan., announced a price increase across all product lines, effective Sept. 1. Caravan Ingredients' price increases vary dramatically throughout its product portfolio because of raw material cost. Based on the current volatility of the commodity market, Caravan Ingredients will likely be unable to hold list pricing for more than three months.
“Caravan Ingredients understands that price increases are difficult to absorb,” said Ian Trood, vice president, sales. “We are continually striving to improve our efficiency in order to reduce the impact of rising costs.”
Kliklok-Woodman, Decatur, Ga., announced a restructuring of its international operations. Klikwood Corp., parent company of Kliklok Corp., Decatur, Ga. and Kliklok International Ltd., Bristol, UK, announced the acquisition of a majority interest in Kliklok International by its senior management team, consisting of Robert Morley, managing director, David Williams, finance director and Nigel Fox, business development director. These companies operate under the brands of Kliklok and Woodman. These changes position the Klikok International management team for quick response to its customers, associates and suppliers. Klikwood's remaining minority interest in the Bristol business and any new licensing agreements negotiated between the parties will retain the benefits of historic cooperation.
Maple Leaf Foods, Toronto, purchased 458,800 common shares of Canada Bread Co. Ltd. on the Toronto Stock Exchange for $71.15 per share for an aggregate of $32,643,620. These shares, together with 158,000 shares purchased on May 13, 2005 and 122,900 shares purchased on Jan. 17, 2007, represent about 2.9 percent of Canada Bread's outstanding shares. Maple Leaf Foods now owns 22,818,515 common shares, representing about 90 percent of the outstanding common shares of Canada Bread.
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